The saga has rumbled on for over a month, and talk of a potential move has seemingly intensified as the days wear on.
On Wednesday, RMC Sport's chief football writer Mohamed Bouhafsi tweeted what the latest developments were on the deal.
"His only choice is Liverpool. Klopp and Alcantara have already discussed. Alcantara has already prepared his arrival in England. Problem: Bayern know it and discussions with Liverpool are long," Bouhafsi wrote.
"I assume that he will leave us. I think his decision has been made," he said.
It’s clear due to the many reports earlier this summer that Thiago is intent on becoming a Liverpool player, and positive discussions have already occurred between him and Klopp.
But it's clear the main stumbling block in the deal is the fee.
Liverpool have made it abundantly clear that they do not want to shell out €30million for a player whose contract ends next year, and the player will be able to talk to clubs and sign a pre-contract agreement in January.
The problem for Liverpool is that, if they aren’t willing to pay the fee for Thiago, there are plenty of top European clubs who will.
In Thiago, we’re talking about one of the best midfielders in the world; a player who has a legitimate case to start for most clubs in Europe. The likes of PSG and Manchester United already said to have enquired about the Spaniard, according to reports.
"Manchester United only had contacts with his agent at the moment, nothing advanced between clubs.”
Despite Man United being linked with a move earlier this week, they have now confirmed the signing of Ajax midfielder Donny van de Beek for £40 million.
While stylistically a different midfielder from Thiago, his arrival makes it unlikely that United will fiercely pursue a move for Thiago, potentially giving Liverpool a clear path to the Spanish international.
The longer the deal takes, the more criticism owners Fenway Sports Group are likely to receive. Some supporters have questioned the noises the Liverpool hierarchy have put out regarding the lack of backing this summer.
In addition, the inactivity in recent transfer windows is hard to accept for supporters when the likes of Napoli are spending over £70 million on Victor Osimhen, with no departure funding the transfer.
England's top clubs, as well as the likes of West Brom, Everton and Sheffield United have looked more proactive than Liverpool this summer and haven't hesitated to invest in their side, despite the uncertainty of the COVID-19 pandemic.
Considering Liverpool's stature and the amount of money the club has been able to bring in - on and off the pitch - it's no surprise supporters are left bewildered regarding their inaction in the transfer market.
However, it's perhaps important to note similar noises were made last summer, despite Klopp reassuring supporters that continuity could be the Reds' biggest weapon.
What could lead to a breakthrough in a possible deal for Thiago is Barcelona's interest in midfielder Gini Wijnaldum, who is reportedly keen to join his former international manager Ronald Koeman in Spain.